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St. Petersburg Arts & CultureEconomic Impact Report2015

Arts & Culture Economic Impact Report, 5/7/15 1 | P a g e

The Economic Impact of Arts and Culture in St. Petersburg 2015

Attributes of a thriving city include the strong presence of arts and cultural activities, museums, art galleries and studios, and performing arts centers. A community’s focus on arts and culture contributes to the quality of life of its citizens; drives tourism; and supports business relocation and employee recruitment efforts. St. Petersburg is a perfect example. Our City’s identity as an arts and culture destination has been formed by the presence of a strong performing arts community that includes award-winning professional theatres; eight museums, with a new Museum of the American Arts and Crafts Movement under construction; a thriving indie music scene; more than 50 public studios and art galleries; dozens of creative businesses in five identified arts districts; and two city recognized neighborhood arts enclaves, Kenwood and Old Southeast. The number of artists, performers and writers in St. Petersburg, Clearwater and Tampa has increased 44% from 2002 to 2012. (See Table 6.) And millions of people attend various arts and cultural programs offered by different venues here. Clearly, the arts are an important economic and social driver. In this report, which is based on information from 32 non-profit arts and cultural organizations, we will demonstrate their direct and indirect economic impact on the city of St. Petersburg.

Highlights

• These non-profit organizations self-reported attracting 5,167,494 visitors in 2014, and generated total revenues of $38,270,987.

• Our analysis shows that 32% of these visitors came from outside the Saint Petersburg area.1 • The 32 organizations earned revenue total was approximately $38,270,987.2 • Direct spending was $32,248,513.3 • Indirect spending based on admissions was $180,277,327 for a total economic impact of

$212,525,840. • Local government revenue estimate was over 6M; state government revenue estimate was

over $9M • These 32 organizations were responsible for 822 jobs (185 full time, 637 part time)

1 32% is the average of 19 non-profits reporting admissions on their 2014 City Grant Award applications. 31.8% is the average of non-residents’ admissions reported in the Americans for the Arts Report: Arts and Economic Prosperity IV. 2 32 organizations: 22 organizations calculated from 2014 budgets and 10 from 2012 revenues (Form 990s). 3 32 organizations calculated from 2014 budgets: 10 from budgets, 22 from revenues


Our 2015 economic impact report results from the collaborative work of Dr. Maling Ebrahimpour from the University of South Florida St. Petersburg; John Collins from the St. Petersburg Arts Alliance; and interns, Guillaume Le Curieux-Durival and Habib Feghouli, with support from the Bank of America. Data were collected from sources including an online survey, city documents, IRS form 990s, and federal government documents. This report builds upon Arts & Economic Impact Report 2010 produced by Dr. Maria Luisa Corton, Dr. Ebrahimpour and John Collins. Knowing the economic impact of our creative businesses and arts & culture organizations enables us to demonstrate their investment potential. Legislators, local businesses, and individual contributors will be more willing to provide financial support when they have a clear understanding of what the return on their investments in the sector will be.

Data

The data set for the analysis consists of 32 non-profit arts and cultural organizations located in the City of St. Petersburg. Many of these participate in the St. Petersburg Grant Awards program. See Appendix A for complete list of participants. An additional dataset derived from a survey of 132 artist entrepreneurs and creative businesses provides ancillary information in Appendix B.

Limitations

Economic impact studies measure indirect economic impact. However, we must note that these are estimates and are not exact results given the assumptions made about the flow of goods and services when they are calculated. The most important assumption is that trading patterns are fixed. In the particular case of the arts and culture industry, it is assumed that the local economy responds in the same way to each additional change in the arts and culture industry provision of services. Additionally, incoming firms in this industry are not always a net new source of economic activity because they can take business away from existing organizations. New arts and culture developments create indirect economic impacts only if they capture spending that formerly left the area or if they attract new spending from outside the area. Furthermore, the Arts & Economic Prosperity IV informs readers that when using their model one must always keep the following caveats in mind:

1. the results from using their model are based upon the averages of similarly populated communities,

2. input/output models were customized for each of these similarly populated communities, providing very specific employment, household income, and government revenue data, and

3. the results are therefore estimates.


Direct Economic Impact of Non-‐profit Arts & Cultural Organizations

As shown in Table 1, total direct spending in 2014 from the 32 arts and culture organizations participating in the study was $32,248,513. Of this amount, 40.6% goes to local salaries and wages as analyzed in the Americans for the Arts Report. These 32 organizations represented some 822 local jobs (185 full time, 637 part time). Table 1 displays the data organized by type of organization. The data in this table is for illustrative purposes rather than to perform a rigorous financial analysis given that gross income is underrepresented due to self reporting.

TABLE 1: DATA BY TYPE OF ACTIVITY

Indirect Spending Economic Impact of Non-profit Arts & Cultural Organizations

The 32 non-profit organizations reported 5,167,494 visitors in 2014, with 32% of these visitors from outside St. Petersburg. According to the Florida Tax Watch Tourism Research Report released by the Florida Cultural Alliance, “74.9% of visitors to Florida participate in cultural activities. Research demonstrates that of the 58-million attendees (84% residents) and visitors (16%) at Florida arts and cultural events, the non-local attendees spend an average of 137% more (lodging, meals, transportation, souvenirs, etc.) than resident attendees per person: $57.49 vs. $24.25.” 4 Table 2 illustrates that the total indirect economic impact of the 32 organizations in terms of impact of visitors’ expenditures alone is $180,277,327.

TABLE 2: NON-LOCAL AND LOCAL INDIRECT IMPACT OF VISITOR SPENDING

Total Visitors 5,167,494 Non-Local Visitors 1,653,598 Non-Local Visitors’ Indirect Impact $95,065,349 Local Visitors 3,513,896 Local Visitors’ Indirect Impact $85,211,978 TOTAL INDIRECT IMPACT $180,277,327

4 The Economic Impact of Nonprofit Arts and Culture Organizations and Their Audiences in the State of Florida, Americans for the Arts' Arts & Economic Prosperity III Study and Americans for the Arts' The Creative Industries in Florida, 2014.

NUMBER OF ORGANIZATIONS

TOTAL VISITORS

EXPENDITURES ($)

GROSS INCOME($)

Arts Center/Gallery 7 1,153,874 4,186,609 6,148,175 Museums 5 1,600,952 12,844,502 16,543,362 Performing Arts 20 2,412,668 15,217,402 15,579,450 Total 32 5,167,494 32,248,513 38,270,987


Table 3 presents the direct and indirect impact of the expenditure on arts and culture industry for St. Petersburg. It also illustrates the impact of arts and culture industry multiplier not only on the city, but also for the local and the state governments with a total direct and indirect economic impact of a little over $212,500,000. The table demonstrates that for every $1 spent directly on arts and culture, an additional $4.59 is generated; well within the industry axiom that every dollar invested in the arts is returned five-fold.

TABLE 3: DIRECT AND INDIRECT ECONOMIC IMPACT IN ST. PETERSBURG

Total Expenditures Nonprofit Arts and Culture $32,248,513

Organizations Nonprofit Arts and Culture $180,277,327 Audiences

Total Industry Impact

The Sum of Organizations and Audiences $212,525,840

Using the Americans for the Arts online Arts and Economic Prosperity Calculator, we can calculate approximate local and state government revenue estimates. 5 Further, the analysis indicates that the total impact on the household earnings for St. Petersburg was over $84 million, representing “total dollars paid to community residents as a result of the expenditures made by your arts and culture organization and/or its audiences. Household income includes salaries, wages, and proprietary income.” (See Appendix C)

TABLE 4: ECONOMIC IMPACT FOR LOCAL AND STATE REVENUE

Local

Government Revenue

State Government

Revenue Nonprofit Arts and Culture $1,233,506 $1,448,281 Organizations

Nonprofit Arts and Culture $5,079,949 $5,606,174 Audiences

Total Industry Impact The Sum of Organizations and Audiences

$6,313,455 $7,054,455

________________________________ 5 Americans for the Arts online Arts and Economic Prosperity Calculator, http://www.americansforthearts.org/sites/default/files/aepiv_calculator/calculator.html#fineprint


City and County Arts Economic Impact Quick Facts Based on the preceding findings, it should not be any surprise that the size of the visual arts, performing arts, museums and related activities in the Pinellas County’s economy represents a significant creative arts driven economy. • The St. Petersburg Arts Alliance has been surveying participation in the Second Saturday

ArtWalk since 2012. While the number of ArtWalk participating studios and galleries varies from 35-45 each month, they are self-reporting well over 3,000 visitors a month, trending toward 4,000. Assuming each participant visits 3 galleries in one evening, we estimate a minimum of 1,000 visitors spending $24.25 each per month, generating annually an additional $291,000 in adjacent shops, restaurants, coffee shops and bars. This number does not include art purchases.

• Creative Placemaking -- Since the 2010 Arts & Culture Economic Impact Report was published, creative businesses in five districts now embrace arts as core to their development. The Warehouse Arts District, EDGE District and the Central Arts District associations have been founded, and with the Waterfront Arts and the Grand Central districts they help define our City of the Arts.

• With a growing number of studios, hotshops, and galleries, St. Petersburg is becoming

America’s Southeast leader in Glass Arts and the Clay Arts. ! The number of artists, writers and performers in St. Petersburg, Clearwater, and Tampa has

increased 44% over ten years from 2002 to 2012. 5,902 artists, performers and writers, reported $103,278,000 in receipts in 2012. Average income was $17,498.81.

! St. Petersburg has 1,044 creative businesses, employing 6,108 people, reporting sales volume of $519,283,534. The creative cluster includes Design and Publishing, Film, Radio, TV, Schools, Visual Arts/Photography, Museums and Collections and Performing Arts. (Table 9)

! Artist relocation, redevelopment of areas with creative businesses, festivals, and events add to our ability to attract business. Eagle Datagistics, iQor, and GeniusCentral have moved their headquarters to St. Petersburg, with their leadership citing our vibrant arts community as a contributing factor to the relocation decision.

! Pinellas County is home to 2,664 arts-related businesses that employ 13,920 people. The

creative industries account for 3.7 percent of the total number of businesses and 2.7 percent of the people they employ. The Creative Industries data is current as of January 2015 and is based on active businesses that are registered with Dun & Bradstreet. Because not all businesses register, our analyses indicate an under-representation of arts businesses (particularly those that are nonprofit arts organizations and individual artists). The data in this report should be considered conservative. www.AmericansForTheArts.org/CreativeIndustries.

________________________________ 6 Data Source: ESRI, 2015, Cluster Source: Americans for the Arts, Creative Industries definition List, 2006


Cover Credits • Cover Photo: Charlie Parker, Charley Parker Pottery. Photo by John Collins • Cover Design: Michelle Fielding, Vibe Digital Media

References

• Creative Industries Report 2015 -- Pinellas County

Creative Industries: Business & Employment in the Arts, www.americansforthearts.org/creativeindustries

• RIMS: U.S. Dept. of Commerce, Bureau of Economic Analysis,

https://www.bea.gov/regional/rims/rimsii/

• Culture Builds Florida’s Future, Florida Arts Council, 2005 http://dos.florida-arts.org/documents/cbff.pdf

• Arts and Economic Prosperity IV: Economic Impact of the Nonprofit Arts & Culture

Industry, Americans for the Arts, 2014 www.americansforthearts.org/by-program/reports-and-data/research-studies-publications/arts-economic-prosperity-iv/national-findings.

• Investing in tourism, analyzing the economics of expanding of Florida tourism

Florida Tax Watch Tourism Report, 2013 http://floridataxwatch.org/resources/pdf/2013TourismFINAL.pdf http://www.flca.net/images/A_Few_Arts_and_Culture_Facts_to_Use_1-6-15.pdf

• Creative Economies in the South, Florida Creative Industries Summary

South Arts, Inc., 2012 http://www.southarts.org/wp-content/uploads/Florida-Summary.pdf

• Creative Placemaking, 2012. A White Paper for The Mayors’ Institute on City Design, a

leadership initiative of the National Endowment for the Arts in partnership with the United States Conference of Mayors and American Architectural Foundation by Markusen Economic Research Services and Metris Arts Consulting, 2010 http://metrisarts.com/wp-content/uploads/2012/06/CreativePlacemaking-Full-Report.pdf

• Florida Tax Watch Tourism Research Report, as reported by the Florida Cultural Alliance,

sourcing The Economic Impact of Nonprofit Arts and Culture Organizations and Their Audiences in the State of Florida, Americans for the Arts' Arts & Economic Prosperity III Study and Americans for the Arts' The Creative Industries in Florida, 2014.

• Non-profits and for-profit businesses can calculate their own economic impact easily with the

Americans for the Arts online Arts and Economic Prosperity Calculator, http://www.americansforthearts.org/sites/default/files/aepiv_calculator/calculator.html#fineprint


Appendix A: Arts and Culture Non-Profit Organizations

A Simple Theatre Academy of Ballet Arts Al Downing Tampa Bay Jazz Association, Inc. American Stage Theatre Company Arts Conservatory for Teens Arts for Life Boyd Hill Preserve Boys and Girls Club - Royal Theater Creative Clay, Inc., Cultural Arts Center Dr. Carter G. Woodson African American Museum EMIT, Helios Jazz Orchestra Family Resources Inc. / Youth Arts Corps Florida CraftArt Florida Holocaust Museum Florida West Ballet freeFall Theatre Great Explorations Mahaffey Theater Foundation, Inc. Master Chorale Morean Arts Center Science Technology Center Second Time Arounders SPIFFS -- St. Petersburg International Folk Fair Society St Petersburg Clearwater Film society St. Petersburg City Theatre St. Petersburg Historical Society St. Petersburg Museum of Fine Arts St. Petersburg Opera Company St. Petersburg Preservation The Florida Orchestra The Salvador Dali Museum The Studio@620


Appendix B: For-Profit Creative Businesses

A second data set is taken from responses to a December 2014 – January 2015 online survey of 138 St Petersburg area artists, studio, and gallery owners who were invited to participate via email, Facebook and Twitter. This survey’s economic impact did not include their economic drivers, as many have not registered for DUNS numbers. However, the information does provide an illustrative snapshot of our creative businesses in St. Petersburg.

Survey highlights:

! Half of all respondents work in the visual arts (Table 4). Arts educators, writers/editors, performing artists, and craft artists round out the top five.

! More creative businesses were formed in the last five years than in all previous years, especially in visual arts. (Table 5)

! The number of artists, performers, and writers has increased 44% from 2002 to 2012. (Table 6)

! 5,902 artists, performers and writers reported $103,278,000 in receipts in 2012. Average

income was $17,498.81 (Table 6)

! The income of the artists, performers and writers has increased only 2.8%, from 2002-2012, which included a 13% decrease in 2009. (Table 6)

! 40% work in professional studios and galleries. 60% work in a home studio. (Table 7)

! 34% of respondents derive 100% of their annual income from their art. (Table 8)

9% derive up to 75% annual income 9% derive up to 50% annual income 48% derive up to 25% annual income


TABLE 4: CREATIVE BUSINESS DISCIPLINES

TABLE 5: ESTABLISHMENT OF CREATIVE BUSINESSES BY YEAR

Year

Visual Arts

Clay Arts

Glass Arts

Graphic Arts

Performing Arts Photographer

Craft Arts

Arts Educator

for-profit gallery

Writer/ Editor

0 13 3

2 3 4 2 5

3 1905 1

1917 1975

1 1978

1981

1 1982 1

1 1 1

1983 1

1

1 1

1 1984 1

1988

1 1989 1

1

1992 1

1

1 1995 1

1

1997 1 1998 2 1999

1

2000 2 2001 1

1 2002 1

1

1

2003 1

2 2004

2005 1

2 2006

1 1 1

2007 3 2

1 1

1 3

1 2008 1

2 1 1

2009 2

1

2 2010 4 1 1 3

1 2 2 1

2011 7 1

2 1 2 3 2 2012 6

1 1 1 3 5 2

2013 7

1

3 2014 7 1

1 3

2 4 1 5

Total 66 8 5 13 18 11 14 22 10 18


TABLE 6: Independent Artists, Writers and Performers in the Tampa-St. Petersburg-

Clearwater, FL Metropolitan Statistical Area, 2002 through 2012 US Census Bureau – Non Employer Statistics originate from tax return information of the Internal Revenue Service. The data are subject to non-sampling error such as errors of self-classification of industry on tax forms as well as errors of response, non-reporting, and coverage. 7115 – Independent Artists, Writers and Performers – This industry comprises independent, i.e., freelance individuals primarily engaged in performing in artistic productions, in creative artistic or cultural works or productions, or in providing technical expertise necessary for these productions. This industry also includes athletes and other celebrities exclusively engaged in endorsing products or making speeches or public appearances for which they receive a fee.

TABLE 7: Work Places

Year

Number Reporting

Year-‐to-‐ Year Change

Change Since 2002

Receipts

Year-‐to-‐ Year

Change

Change Since 2002

Per Capita Revenue

Year-‐to-‐ Year

Change

Change Since 2002

2002 4,094

$66,378,000

$16,213.48 2003 4,153 1.4% 1.4% $68,631,000 3.4% 3.4% $16,525.64 1.9% 1.9%

2004 4,477 7.8% 9.4% $76,097,000 10.9% 14.6% $16,997.32 2.9% 4.8% 2005 4,783 6.8% 16.8% $87,235,000 14.6% 31.4% $18,238.55 7.3% 12.5% 2006 4,882 2.1% 19.2% $89,912,000 3.1% 35.5% $18,417.04 1.0% 13.6% 2007 5,341 9.4% 30.5% $95,291,000 6.0% 43.6% $17,841.42 -‐3.1% 10.0% 2008 5,111 -‐4.3% 24.8% $94,551,000 -‐0.8% 42.4% $18,499.51 3.7% 14.1% 2009 5,355 4.8% 30.8% $86,230,000 -‐8.8% 29.9% $16,102.71 -‐13.0% -‐0.7% 2010 5,696 6.4% 39.1% $95,037,000 10.2% 43.2% $16,684.87 3.6% 2.9% 2011 5,760 1.1% 40.7% $98,063,000 3.2% 47.7% $17,024.83 2.0% 5.0% 2012 5,902 2.5% 44.2% $103,278,000 5.3% 55.6% $17,498.81 2.8% 7.9%


TABLE 8: ANNUAL INCOMES

TABLE 9: ST. PETERSBURG CREATIVE BUSINESS IMPACT Cluster Number of

Businesses Number of Employees

Sales Volume

Design and Publishing 400 1,581 $179,352,328 Film, Radio, and Television 146 3,300 $250,191,330 Museums and Collections 15 194 $8,746,105 Performing Arts 172 401 $24,095,380 Schools and Services 19 51 $5,196,869 Visual Arts/Photography 292 581 $51,701,522 Grand Total 1,044 6,108 $519,283,534 Data Source: ESRI, 2015 Cluster Source: Americans for the Arts, Creative Industries Definition List, 2006


Appendix C:

POPULATION of your community: 100,000 to 249,999

Your Organization's TOTAL EXPENSES (please do not use commas): $ 32248513

TOTAL ATTENDANCE to your organization's arts events (again, do not use commas): 5167494

CALCULATE Reset

TotalExpenditures FTE Jobs Household

IncomeLocal

Government Revenue

StateGovernment

Revenue

Nonprofit Arts and CultureOrganizations: $32,248,513 1186.7 $26,591,156 $1,233,506 $1,448,281

Nonprofit Arts and CultureAudiences: $98,544,111 2798.7 $58,272,089 $5,079,949 $5,606,174

Total Industry Impact:(The Sum of Organizations and Audiences) $130,792,624 3985.4 $84,863,245 $6,313,455 $7,054,455

Print Your Results Please see the fine print below.

TotalTotalExpenditures:Expenditures:

The total dollars spent by your nonprofit arts and culture organization and its audiences;event-related spending by arts and culture audiences is estimated using the averagedollars spent per person by arts event attendees in similarly populated communities.

FTE Jobs:FTE Jobs: The total number of full-time equivalent (FTE) jobs in your community that are supportedby the expenditures made by your arts and culture organization and/or its audiences. AnFTE can be one full-time employee, two half-time employees, four employees who workquarter-time, etc.


HouseholdHouseholdIncome:Income:

The total dollars paid to community residents as a result of the expenditures made by your arts andculture organization and/or its audiences. Household income includes salaries, wages, andproprietary income.

GovernmentGovernmentRevenue:Revenue:

The total dollars received by your local and state governments (e.g., license fees, taxes) asa result of the expenditures made by your arts and culture organization and/or itsaudiences.

When using estimates derived from this calculator, always keep the following caveats in mind: (1) the results of this analysis are based uponthe averages of similarly populated communities, (2) input/output models were customized for each of these similarly populated communities,providing very specific employment, household income, and government revenue data, and (3) your results are therefore estimates, and shouldnot be used as a substitute for conducting an economic impact study that is customized for your community.

© Copyright 2012 by Americans for the Arts.www.AmericansForTheArts.org

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